MONROVIA – Liberia’s Finance Minister, Hon. Augustine Kpehe Ngafuan, has reassured government and security sector officials that the country’s fiscal and security sectors remain steady despite the loss of $300 million in donor funding earlier this year.
Minister Ngafuan spoke on Wednesday, September 17, during ongoing consultations between the National Budget Committee and the nation’s security sector, as part of preparations for the FY2026 national budget formulation process.
Acknowledging the sacrifices of security personnel, Ngafuan praised the dedication of security institutions for maintaining stability, noting that a secure environment is key to boosting business confidence, attracting investment, and sustaining national revenue growth.
“You are one of those that the country depends on. By keeping the environment secure, you contribute not just to safety but also to business confidence, investment, and ultimately revenue expansion,” he noted.
He likened national revenue to a growing cake, stressing that a secure environment allows businesses to thrive and government revenues to increase. “It’s one thing to ask for a bigger chunk of a small cake; but if the cake is small, even the biggest slice is still small. When we make the cake bigger, everyone—including the security sector—benefits,” Ngafuan explained.
Managing Shocks and Fiscal Discipline
Ngafuan also highlighted the government’s ability to maintain fiscal stability despite major donor setbacks. He revealed that earlier this year, USAID, Liberia’s second-largest donor, canceled the bulk of its operations, cutting down 29 projects to just five. The withdrawal, he said, affected sectors such as education, health, and agriculture, representing an estimated loss of nearly US$300 million.
“Last year was challenging, and this year has been equally challenging. Yet, the ship has not wrecked, and the plane has not crashed. That is because of the leadership of the President, working with the Cabinet and all of you,” he told security officials.
He assured the gathering that the government is working closely with the Liberia Revenue Authority (LRA) to strengthen domestic revenue mobilization to offset external funding shortfalls and keep critical programs running.
Budget Trends
Liberia’s national budget has grown from US$738 million in FY2024 to US$880.7 million in FY2025. While initial projections for FY2026 are “not too upbeat,” Minister Ngafuan emphasized that prudent fiscal management and security sector support remain central to sustaining growth and stability.
“We must continue working to keep the environment safe and the economy steady. Security is the foundation of investment and development,” Ngafuan reaffirmed.
The consultations with security agencies are part of broader national engagements as the Finance Ministry drafts the FY2026 budget. Stakeholders say the discussions signal Minister Ngafuan’s determination to balance fiscal discipline with the need to invest in peace and stability—pillars essential to Liberia’s democratic consolidation and economic transformation.
